[Collection] Taxation Guidelines for International Students in the United States

  The United States is a country that places great importance on individual tax records. In the United States, a good and continuous personal tax record is a very useful official document. It demonstrates the taxpayer's ability to realize their self-worth and their commitment to honest taxation.

 

  Do not think that tax filing is only a matter for American citizens; foreign students paying high tuition fees in the United States are also required to file taxes. This is of great help for international students in finding jobs, applying for green cards, and taking citizenship exams. The U.S. tax system is quite complex, and the tax issues faced by international students vary from person to person. However, once you understand the tax regulations and considerations applicable to international students in the United States, tax challenges can be easily resolved.

 

  Experts from the WorldWay Immigration Group remind that when filing taxes in the United States, one should adhere to the principle of "better early than late." Do not wait until mid-April to realize that you have filled out the wrong form or omitted information, as this could jeopardize your tax filing deadline. Remember, the deadline for paying annual personal income tax to the IRS is no later than April 15 of the following year.

 

 

  The Internal Revenue Service (IRS) is the government agency responsible for collecting federal personal income tax. All F visa holders and J-1 visa holders who stay in the United States during the tax year (from January 1 to December 31) are required to pay personal income tax, even if they do not have income within the United States. Failure to comply with tax laws can have serious consequences for international students.

 

  If you or your family members enter the United States on an F or J visa, you will be considered a non-resident taxpayer; for the next five years of your stay in the U.S., you will be required to pay taxes as a non-resident.

 

  If you have income within the United States, you must submit the U.S. federal Form 1040 or Form 8843. Additionally, you will also need to pay state personal income tax.

 

  If you do not have income within the United States, as a non-resident taxpayer, you must submit the U.S. federal Form 8843. Interest earned from bank deposits does not count as personal income.

 

   Regardless of whether F-1 or J-1 students have income within the United States, their spouses must submit Form 8843.

 

  International students who receive scholarships (the portion not covered by tuition waivers) are required to pay 14% of the amount. If international students receive teaching assistantships or research scholarships, they must pay taxes based on the amount of the scholarship.

 

  Currently, international students from over 50 countries and regions can enjoy exemptions from part or all of their personal income tax in the United States. To find out if your country is among these and how tax treaties may affect you, refer to IRS Publication 901.

 

  International students should also pay attention to the following:

 

  1) Social Security Tax:

 

  In certain cases, international students may be required to pay Social Security tax based on the length of their stay in the U.S. However, students working at educational institutions can be exempt from paying Social Security tax on that income. Generally, F-1 and J-1 students are exempt from this tax during their first five years of non-resident status in the United States.

 

  2) Social Security Numbers:

 

  For international students, Social Security Numbers are only issued to those who are eligible to work in the U.S. and have submitted an application to the Social Security Administration. If you need to apply for a Social Security Number, please first contact your school's international student advisor. Present your passport and I-20 or DS-2019 form along with your I-94 card to the international student advisor so they can write a letter verifying your eligibility and provide you with relevant guidance.

 

  3) Individual Taxpayer Identification Number (ITIN):

 

  To pay personal income tax to the U.S. and its states, international students need an Individual Taxpayer Identification Number in addition to a Social Security Number. However, if international students only submit Form 8843, they do not need an ITIN. If you or your accompanying family members cannot obtain a Social Security Number, you must apply for an ITIN. If you previously obtained an ITIN without applying, that number will be invalidated. You must apply for a permanent ITIN before submitting your tax forms.

  Working Together to Achieve Greatness, Celebrating 20 Years of Excellence

 

  On the occasion of the 20th anniversary of the WorldWay Immigration Group, to express gratitude to our new and old clients for their support and trust over the past 20 years, we are launching the "WorldWay Group 20th Anniversary Celebration, Gratitude and Comprehensive Benefits" event from now until November 12, 2017. During this period, the WorldWay Group will offer numerous significant discounts to share joy with investors. For details, please call: 400-138-2929.